Regional News – Latin America August 2017

The Supreme Court of Guatemala has issued a provisional decision with respect to an action brought by the anti-mining organization, CALAS, against Guatemala’s Ministry of Energy and Mines (MEM), alleging that MEM violated the Xinca Indigenous people’s right of consultation in advance of granting the Escobal mining license to Tahoe Resources’ Guatemalan subsidiary, Minera San Rafael. The provisional decision suspends the Escobal mining license of Minera San Rafael while the action is being reviewed by the court, even though no Xinca representative or community is currently participating in the CALAS lawsuit against MEM.

The Chilean environmental authority has approved the expansion of the Spence copper mine, which would amount to an investment of about $2.5 billion. The execution decision, however, will have to wait until August, according to El Mercurio. The new expansion includes the construction of a concentrator plant to increase production and extend the life of the deposit about 20 years. The Committee on Environmental Assessment (CEA) of Antofagasta decided unanimously to approve the BHP initiative. Environmental approval of Spence’s expansion could pave the way for its execution.

Nyrstar NV has successfully completed the sale of its Coricancha mine in Peru to Great Panther Silver Ltd., a primary silver mining and exploration company listed on the Toronto Stock Exchange, for a total cash consideration of $100,000-plus earn-out consideration of up to $10 million. Under the earn-out, Nyrstar will be paid 15% of the free cash-flow generated by the Coricancha mine during the five-year period after which the Coricancha mine is cumulative free cash-flow positive from closing of the transaction.